The intent of homeowners insurance is to protect your home from loss or damage. There’s also coverage for personal property, and there are limits that apply to cover items like jewelry, firearms and collectibles. Personal property is covered for theft or named perils so losing a pair of diamond earrings may not be covered unless you can prove a theft to get the most out of insurance coverage.

If you own property worth more than about $1500, you should consider adding a Personal Property Floater to your policy. This requires a written appraisal that specifically describes the items. The coverage is usually calculated by increments of $100 in value.

This will increase your premium but besides affording you full coverage for the item, it also provides all risk coverage which includes a mysterious disappearance. In other words, if you lose a ring or an earring is accidentally flushed down the drain, it is covered.

The tough economy has spurred an increase in dubious insurance claims to replace rings and other personal items, but it’s often much harder to prove a loss than many homeowners might think, including a record or receipt of the

item. There are also other personal property items inside the confines of many homes that may also not be covered by insurance coverage.

If you run a business from home, your business equipment will be excluded from coverage on your homeowners policy. Business equipment would include computers, copiers, fax machines, data storage units, etc. that are used to operate a business. See if you can purchase an endorsement to your policy to add coverage for business equipment. This may increase your premium but in the event of a loss, you will be grateful for the coverage that will allow you to get your business running again.

When you purchase an insurance policy to get the most out of it, have a discussion with your agent and explain the type of personal property you own. Many times, they will have good suggestions about ways to maximize your coverage to provide you with peace of mind.